Freddie Mac is a government-sponsored enterprise chartered by Congress in 1970 with a mission to provide liquidity, stability, and affordability to the U.S. housing market. The secondary mortgage market has committed to promoting energy-efficient single-family homes. By providing an efficient capital markets execution for loans secured by energy-efficient homes, Freddie Mac is encouraging more lending in this space and making it easier for prospective homeowners to purchase these types of homes. Through its Single-Family Green Mortgage-Backed Securities (Green MBS) program, Freddie Mac offers incentives to mortgage lenders for high-energy performance homes. In April 2021, Single-Family issued its first Green MBS. Currently, Freddie Mac uses the threshold of a HERS® Index score of 60 or less. On October 10, 2024, Freddie Mac announced that as part of its 2025 Freddie Mac Single-Family Green MBS Framework, it will lower its HERS Index score threshold to 55 or less on January 1, 2025. Freddie Mac also announced that it will also be including the option of new homes with an ENERGY STAR v3.2 or the latest version of the certification. For more information go to 2025 Freddie Mac Single Family Green MBS Framework.
